The workforce has changed too, as younger employees replace retirees. New strategies and resources are needed to ensure prospective hires possess the right skill set and that employers are prepared to recruit, develop, and retain productive, satisfied workers.
Shaping Tomorrow’s Workforce
Tom Egan, VP Industry Services | PMMI
The shortage of labor, especially skilled workers, is a chronic lament in manufacturing. Meanwhile, as technology and markets have evolved, the knowledge and qualities workers need to be successful have shifted. The workforce has changed too, as younger employees replace retirees. New strategies and resources are needed to ensure prospective hires possess the right skill set and that employers are prepared to recruit, develop, and retain productive, satisfied workers.
Four Pillars of Talent Attraction
Markets – Tell why your industry is where people want to build careers.
Products – Explain why your offering is positioned for growth and how it will deliver personal benefits.
Team – Describe coworkers and their accomplishments to show the success of the organization.
Mission – Define the goals of the company beyond profits. How does it benefit society?
(From Building an Effective Talent Strategy for the Packaging Industry report)
As of August 2023, the manufacturing sector was battling to fill a gap of 616,000 workers (the difference between the number of open jobs and the number of unemployed people), according to the Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics. This gap won’t disappear any time soon. A study by Deloitte and The Manufacturing Institute (MI), Taking Charge: Manufacturers Support Growth with Active Workforce Strategies, reports that half of the 3.8 million jobs expected to open between 2024 and 2033 will remain vacant. Thus, it’s no surprise that attracting and retaining talent is the primary business challenge for 65% of respondents in the 2024 First Quarter Manufacturers’ Outlook Survey by the National Association of Manufacturers (NAM).
To recruit and retain employees in this candidate-driven market, consumer packaged goods firms and other manufacturers have adopted a variety of tactics, including:
- Automating processes
- Prioritizing ease of use
- Establishing competitive compensation and benefits programs
- Enhancing company culture
- Offering clear paths for advancement, and
- Supporting opportunities for students and young professionals to learn about career opportunities in manufacturing.
Automating processes
Many firms are investing more in automated technologies, which can improve efficiency and productivity. Automation also allows employees to shift to less tedious or physically taxing tasks. Using automation to address labor force shortages has been a huge success, according to 2023 Sustainability and Technology – the Future of Packaging and Processing, a report from PMMI, The Association for Packaging and Processing Technologies.
With costs declining and ease of use soaring, robotics are a popular automation tool, especially for end-of-line tasks such as case packing and palletizing. However, cobots, automated guided vehicles, and mobile robots are automating an ever-growing range of up- and downstream processes.
While automation may help solve the labor gap, it also shifts the skill set needed, accelerating demand for digital competency as operations become more complex and information from smart connected devices and systems needs to be integrated and analyzed. Workers with knowledge of simulation and simulation software are especially sought after.
Prioritizing ease of use
To minimize training time and reduce complexity for operators, today’s machines are equipped with more intuitive human/machine interfaces. In many cases, operators can access visual aids and tutorials to expedite setup, operation, troubleshooting, and maintenance.
At the same time, end users are shifting some monitoring, troubleshooting, repair, maintenance, and training duties from in-house personnel to the OEM, often relying on remote support and predictive maintenance, which provides an early warning of equipment failure, thereby preventing downtime and minimizing the need for in-person visits by service technicians.
Competitive compensation and enhanced company culture
Competitive compensation is key to successful recruitment and retention. However, it should be noted that Gen Z employees look beyond pay scale to consider cultural factors such as the potential for career development and advancement, schedule flexibility, the chance to do meaningful work, relationships with coworkers, and caring leadership before accepting a job, according to a report from McKinsey & Company, From Hire to Inspire: Getting — and Keeping — Gen Z in Manufacturing.
Factors like work-life balance, opportunities for advancement, and a commitment to sustainability also influence workers from other age groups.
Top Five Predictors of Turnover
Pay and benefits
The immediate manager
Poor fit to the job
Coworkers not committed to quality
Connection to organization and/or top management
(From Building an Effective Talent Strategy for the Packaging Industry report)
With so many job candidates and employees seeking a better work-life balance, there has been some movement away from standard work weeks to more flexible schedules. This includes offering part-time and full-time positions, shifting to a four-day, 36-hour work week, and allowing some flexibility as to start times and shift lengths as long as the required hours are worked each week.
Introducing students to manufacturing
Successful recruiting and retention begin with touting careers in manufacturing. “The solution for a prosperous future, in any industry, is the next generation,” notes another PMMI report, Building an Effective Talent Strategy for the Packaging Industry. So, employers need to publicize the company’s story and engage with students. Providing experiences is key. This can be something as simple as an open house, participation in community events, or sponsorship of a school robotics team or summer camps to more involved co-op programs, apprenticeships, and internships. Such efforts typically depend on partnerships with technical colleges, industry associations, universities, state and regional economic development agencies, K-12 schools, and organizations like Nuts, Bolts & Thingamajigs®. Partners not only help raise the profile of manufacturing with students but also can help address training and upskilling needs for existing staff.
Recruiting employees
To attract talent, manufacturers work with partners, participate in local job fairs, and boost engagement by enlivening company information via videos and social media. Other tactics include humanizing the recruitment process, offering competitive compensation and benefits packages, and addressing needs for flexibility, work-life balance, appreciation, sustainability, and the knowledge that their work is meaningful.
Best practices cited in the Building an Effective Talent Strategy report, include clearly communicating job duties, streamlining the interview process, and communicating with candidates every three to five days. A well-organized hiring process not only reflects positively on the prospective employer but also prevents losses of talented candidates to competitors, who can move more quickly. In one streamlined recruitment scenario, the hiring process starts with the candidate doing a brief phone interview with the personnel most connected to the job. If the outcome is favorable, an on-site interview with face-to-face interaction with all relevant personnel is scheduled. Ideally, this group extends an offer before the candidate leaves the building.
Successful Recruitment and Retention
Communicate why your company is attractive
Listen to understand candidate priorities
Strive for efficient, top-notch communication in the hiring process
Offer competitive pay and benefits
Invest in training, cross-training, and mentoring at all levels
Be a data-driven decision maker
Find partners and allies
Look in the mirror and ask, “How can we do better?”
(From Building an Effective Talent Strategy for the Packaging Industry webinar)
Offers should not necessarily be predicated solely on knowledge and skills. For many jobs, a candidate’s behavior, attitude, and motivation are better predictors of success, according to the report.
When identifying candidates, the report suggests looking in other industries for talent and recommends giving an edge to passive candidates over active (unemployed) candidates because it typically takes 11 interviews to find the right active candidate and only four to find the right passive candidate. Often, passive candidates currently employed and not actively seeking a new opportunity can best be identified through an in-house or third-party recruiter. It’s also important to consider internal candidates to provide them with new opportunities in-house.
Several tools help ensure a good match between the candidate and the job. The Building an Effective Talent Strategy report describes one called CLAMPS, where candidates rank challenge, location, advancement, money, people, and security to gauge what they need from their working lives.
Retaining employees
Recruiting is essential, but retention may be even more critical because of the time, effort, and expense involved with hiring and training replacements and the cost of related productivity losses. The Building an Effective Talent Strategy report notes that retention starts with a smooth onboarding experience. A well-laid-out and documented process should make newcomers feel welcomed and supported and set a positive tone for a long-term relationship.
Successful retention initiatives range from competitive wages and gain sharing to regular career discussions and additional benefits like referral or retention bonuses. It also may be helpful to change the company culture to provide “a better, more desirable/enjoyable work environment,” according to PMMI’s Sustainability and Technology report, which notes that automating low-skill tasks can positively impact turnover.
Paying attention to demographics also aids retention. As millennials and Gen Z workers replace retiring Baby Boomers, the Deloitte/MI study reveals that manufacturing must invest in strategies aligned with workforce expectations, such as more schedule flexibility. Nearly half (47%) of study respondents indicated that flexible work arrangements such as flexible shifts, shift swapping, and split shifts help employees achieve the desired work-life balance. Learning new skills also is important. According to the report, employees who feel they can acquire skills that will be important in the future are 2.7 times less likely to leave the organization in the next 12 months.
Retention is also influenced by worker independence and empowerment, and open communication. One way to show employees they are valued is to actively solicit feedback in regularly scheduled meetings and informally. Creating an environment where employees feel valued and supported fosters a sense of loyalty and commitment and helps organizations achieve their goals.
Resources
There are many resources available for workforce development. Nationally, the MI organizes MFG Day —National Manufacturing Day on the first Friday of October each year to encourage manufacturers to provide plant tours to students, parents, teachers, and guidance counselors from K-12 schools. Some states and regional entities also organize events.
Late in 2023, SME launched the Manufacturing Imperative – Workforce Pipeline Challenge, a three-year pilot program with 25 community and technical colleges. Its goal is to supply 75,000 qualified manufacturing workers. Elements of the program include a labor analysis of local, regional, and state needs; development of strategies to attract new populations (particularly under-served and under-represented groups); and implementation of programs, curricula, and certifications to develop skilled individuals ready to be hired.
Workforce development is integral to the services PMMI provides for members and nonmembers. Options include the TechEd 365 course Troubleshooting Packaging Machinery, which is available online in English and Spanish. Designed for newcomers to the industry, it can also serve as a refresher for seasoned employees.
The PMMI Mechatronics Certifications program consists of a series of tests based on industry-developed skill standards. It is recognized by the U.S. Department of Labor and MI’s Skills Certification System. The program seeks to narrow the skills gap by:
- Helping employers assess workers for core skills
- Guiding schools in developing curricula to prepare students for the manufacturing workforce
- Providing a career pathway for students looking for rewarding careers in advanced manufacturing.
PMMI’s OpX Leadership Network offers an array of online courses to help brand owners and their OEMs solve common operational challenges. Topics include:
- Factory Acceptance Testing
- Request for Proposal
- Total Cost of Ownership
- Overall Equipment Effectiveness.
Software tools can analyze various job parameters and ensure compensation packages are competitive, and artificial intelligence offers potential for training since it can personalize learning based on employee needs, preferences, and learning styles. It also can identify gaps and judge effectiveness.
Workforce development tools will be displayed at PACK EXPO International (Nov. 3–6, 2024, McCormick Place, Chicago). Ranking as the biggest packaging and processing event on the planet in 2024, the show will present 2,500 exhibitors spread across 1.3 million net square feet of floor space and foster idea-sharing among 40+ vertical industries. Highlights include free educational sessions, a myriad of networking opportunities, and solutions to address automation, production efficiency, sustainability, flexibility, and e-commerce needs as well as other hot topics and trends. For more information, visit packexpointernational.com.
Tom Egan serves as the vice president of Industry Services for PMMI, the Association for Packaging and Processing Technologies. He joined the PMMI staff in 2003 following more than 20 years in the packaging industry during which he was also an active PMMI member. His previous work experience includes tenures at Eaton Corp. and as Vice President, Marketing & Sales, for Hoppmann Corporation. He has an MBA from Baldwin-Wallace College, and a BEE in Electrical Engineering from Villanova University.
The content & opinions in this article are the author’s and do not necessarily represent the views of ManufacturingTomorrow
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